Under the Indian Contract Act 1872 consideration for a contract may move from the promisee or any other person i.e. a stranger to the consideration can also enforce the contract. But under the English Law the consideration for the contract must move from the promisee and promisee only, therefore a stranger to consideration cannot enforce it.
So, in India the consideration may move from stranger. This law was established in the case of CHINAYYA Vs. RAMAYYA.
CHINAYYA Vs. RAMAYYA.
An old lady Laxhmi Rani gifted her property to her own daughter Ramayya, with the directions to pay a certain sum of money annually to chinayya, her maternal uncle. On the same day Ramayya refused to honour the agreement on the ground that there is no consideration. Chinayya sued for the recovery of the annuity. It was held that there was sufficent consideration i.e. the property given to her by the sister of Chinayya.
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ReplyDeleteur welcome
ReplyDeletethnx for the support
ReplyDeleteHow could Chinnaya sue if he was not a party to the contract? I think it is settled that stranger to a contract cannot sue.
ReplyDeleteMaybe the facts that you stated are incomplete and there must have been another agreement, between Chinnaya and Rammayya for payment of annuity to Chinayya, in which the consideration was treated to be the payment made by Rammaiyya's mother to her earlier (past consideration).
And perhaps that is how it could be held that the stranger to the consideration (Chinnaya) was compentent to sue.
I use the word "maybe" everywhere because I was not able to get my hands on the original Judgment but I have considerable confidence in my submission.
Thank you and Good luck.
have other case that similar to it ?
ReplyDeletehave other case that similar to it ?
ReplyDeleteSimply explained n brief ...thnks..😀😀
ReplyDeleteSimply explained n brief ...thnks..😀😀
ReplyDelete